Fox (FOXA) Up 6.5% Since Last Earnings Report: Can It Continue?

Core Insights - Fox Corporation's Q1 fiscal 2025 adjusted earnings per share reached $1.45, surpassing estimates by 29.5% and showing a year-over-year increase of 33.02% [2] - Revenues for the quarter increased by 11.13% year over year to $3.5 billion, exceeding consensus estimates by 5.6% [3] Revenue Breakdown - Affiliate fees, accounting for 51.71% of total revenues, rose 5.92% to $1.84 billion, driven by a 10% growth in the Television segment and a 3% increase in the Cable Network Programming segment [3] - Advertising revenues, making up 37.29% of total revenues, increased by 10.75% year over year to $1.33 billion, influenced by higher political advertising, strong Tubi performance, and events like the UEFA European Championship [4] - Other revenues, which constitute 11% of total revenues, surged 47% year over year to $392 million [5] Operating Performance - Operating expenses rose 8.38% year over year to $2.02 billion, but as a percentage of revenues, they decreased by 1295 basis points to 58.54% [8] - Total adjusted EBITDA increased by 20.60% year over year to $1.05 billion, with an adjusted EBITDA margin expanding by 231 basis points to 29.41% [9] Financial Position - As of September 30, 2024, Fox had $4.05 billion in cash and cash equivalents, down from $4.31 billion as of June 30, 2024, with long-term debt standing at $600 million [10] Market Position and Outlook - Fox holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [13] - The company has a strong Growth Score of A and a Value Score of A, placing it in the top 20% for investment strategy [12]